IO Interactive shuts Istanbul studio and regains full ownership of Project Fantasy

IO Interactive announced the closure of its Istanbul studio after Microsoft’s Xbox pulled funding for the upcoming RPG Project Fantasy. The studio’s shutdown will involve layoffs and a process to part ways with affected employees. In tandem, the developer confirmed it has regained complete ownership of Project Fantasy and its intellectual property, allowing the game to continue development independently and be funded internally.

The company said the move is part of a broader re‑balancing toward its internal core titles, reducing reliance on external projects and potential mobile spin‑offs. IO Interactive emphasized that the decision, though difficult, is intended to secure the long‑term future of the studio as a fully independent AAA developer and publisher.